SBA approved $263.1 million in loan guarantees for Iowa companies in Fiscal ’21
The U.S Small Business Administration approved $263.1 million in loan guarantees for Iowa companies from its regular loan programs during the agency’s fiscal year 2021, an increase of $29.3 million from the previous fiscal year. The dollar amount of loans for the fiscal year that just ended is the second-highest on record; in fiscal 2011 SBA-backed loans topped $293 million.
For the 12 months that ended Sept. 30, the SBA’s Iowa District Office reported a total of 476 loan approvals, up from 429 in fiscal 2020. These loans were made through banks, credit unions and certified development companies.
The FY2021 Regular Program loan totals for Iowa were:
• 7(a) Loan Program: 381 loans approved for $197,213,100.
• 504 Loan Program: 95 loans approved for $65,899,000.
Lincoln Savings Bank, based in Reinbeck, was the top 7(a) program lender, with both the highest number and dollar amount of SBA-backed loans — 35 loans totaling more than $21.8 million. Iowa Business Growth Co., based in Johnston, was the largest 504 lender, with 46 loans totaling nearly $35.3 million.
As a direct result of SBA guaranteed 7(a) and 504 small business financing in fiscal 2021, 2,042 jobs were reported as being created in Iowa and an additional 3,436 jobs were reported as being retained.
“The significant increase in regular SBA lending, in addition to very high volume of SBA economic recovery loan and grant programs, is a positive sign that the small business economy is rebounding following the pandemic,” said Jayne Armstrong, district director of the SBA’s Iowa District Office. “The SBA’s partnership with lenders and its resource partner network continues to play a key role in the economic recovery.”
Nationally, the SBA approved over 61,000 loans worth $44.8 billion through its signature loan programs.
As a federal agency helping lenders in Iowa and across the country to make small business loans under the 7(a) program, the SBA guarantees that a certain portion of the small business loan will be repaid if the borrower defaults. An SBA guaranteed loan offers borrowers the potential for a lower equity injection and longer amortization with interest rates capped by the government.